Blade-maker TPI broadens supply with OEMs as factories return to pre-Covid levels
GE And Nordex sign new international deals as US contractor ups capacity by 25% on same period in 2019
US blade-maker TPI Composites is expanding its commercial supply arrangements for composite rotor blades with OEMs GE and Nordex, as the contractor reported all global manufacturing facilities have returned to pre-Covid capacity levels.
Arizona-based TPI announced extension of two supply agreements with GE: one in the US state of Iowa through 2021 with an option to extend through 2022, and one in Juarez, Mexico, through 2022.
“We will also be adding another production line in Mexico to provide for GE’s wind turbine technologies in North America,“ said CEO William Siwek, without providing additional details. Responding to market demand there, average rated capacities of GE turbines have increased in the last several years.
In the US, for example, where GE is the leading OEM, its 2.5-127 was the most popular turbine installed in the first quarter. That platform includes a 2.8MW rated turbine that is selling well, and the vendor has begun installing a 3.8MW model – both with 137-metre rotor diameters.
Despite the US economy suffering a steep downturn because of coronavirus, wind installations are still forecast to exceed 10GW this year.
TPI also signed a multi-year agreement with Nordex for two manufacturing lines in its Chennai, India facility, with production in first quarter 2021.
Siwek estimated the contract extensions and new manufacturing lines will add $800m of potential value over the life of the contracts.
In the second quarter, TPI produced 787 sets of turbine blades for 2.65GW in estimated turbine capacity versus 716 for 2.01GW in the same 2019 period.
The higher output occurred despite Covid disruptions and impacts at manufacturing plants in India, Iowa, Mexico and Turkey that impacted net sales by $96m in the period.
“As of today, all of our manufacturing facilities have returned to pre-Covid capacity levels. We believe this positions us well for a strong second half of the year given the strong demand we are seeing from our customers,” said Siwek.
He cautioned, however, that the Mexico and India plants continue to operate in regions with high levels of positive coronavirus cases and this could require the company to reinstate temporary production suspensions or volume reduction if there is a significant resurgence of the virus.
TPI also has a blade manufacturing factory in China.
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